FX.co ★ FX-Perfact | EUR/USD

EUR/USD Timeframe H1: Based on the EUR/USD chart on the H1 timeframe, price movement generally still reflects a bullish trend in the medium-term structure, although in the last few sessions, significant corrective pressure has begun to appear after the price failed to maintain its position at its latest peak. The upward movement since early April has shown a consistent pattern of higher highs and higher lows, indicating that buyers were previously in control of the market. However, recent dynamics indicate a shift in momentum that deserves closer examination. From a Moving Average perspective, the 100-day moving average (MA) is currently below the price but has begun to level off after previously exhibiting a fairly steady upward slope. This indicates that the bullish trend is losing momentum in the short term. Meanwhile, the 200-day moving average (MA) remains lower and is moving with a gentler upward slope, reflecting that the long-term trend remains bullish, although it has not yet experienced significant acceleration. The price's decline, approaching the 100-day moving average (MA) and even breaking through it, indicates that short-term selling pressure is quite dominant, although not yet strong enough to change the overall trend structure. In terms of horizontal support and resistance, the area around 1.1849 represents strong resistance that has recently been tested but has failed to be consistently broken through. Rejection in this area signals substantial supply, limiting the potential for near-term price increases. As long as the price remains below this level, the potential for sideways or even corrective movement remains quite open.

Regarding support, the 1.1759 to 1.1735 levels are important zones currently being tested by the price. This area is close to the 100-day moving average (MA), thus acting as both dynamic and horizontal support. If the price is able to hold above this zone, the chance of a rebound and continuation of the bullish trend remains quite high. However, if a valid breakout occurs, selling pressure could potentially send the price down towards the next support level around 1.1700, which is both a psychological level and a previous demand area. Below that, further support lies in the 1.1643 to 1.1589 range, which previously served as a consolidation area before the upward breakout. This area will become the target for a deeper correction if bearish pressure persists. A decline to that level would also bring the price closer to the 200-day moving average (MA), which serves as a crucial boundary in maintaining the medium-term bullish structure. A breach of the 200-day moving average (MA) would increase the potential for a bearish trend change. Overall, the EUR/USD pair is currently in a transition phase from a bullish trend to a short-term consolidation or correction. As long as the price remains above the 200-day moving average (MA) and does not significantly breach key support, the underlying bias remains bullish. However, the current weakening momentum suggests that buyers need to gather new strength before continuing the upward movement. The price reaction at the nearest support area will be a determining factor in determining the market's future direction, whether it will resume its uptrend or enter a deeper correction.